Denver/Englewood land development - looking for discussion.
Let me start off with what our goals are. We want to own 10 units in the next 10 years with an emphasis on multi family. We currently own two SFH within the last six months.
Ok. Now, some info on the properties. My girlfriend and I currently own two SFH, both primary residents. The first property is a house hack in Denver and in renovation mode. It will be a $1000 a month cash flowing Airbnb by September. We will live upstairs and rent out the apartment basement. The second SFH is in Englewood and was built in 1927. We are currently living in it. It's in great condition, 1400sf, 2 bed 1 bath large farm house with hardwood floors. We will rent it out when the house hack is move in ready and it will have minimal cash flow every month.
Here is where it gets fun. The 1927 house is in a b+ neighborhood, near hospitals and a university, it's surrounded by progress and sits on a 9000+ sf lot which is zoned for 1 unit per 3000sf, medium density multi family. Directly adjacent, and to the west, is a small store front occupying 3000sf of land which unfortunately blocks my properties access to the alley. I've expressed interest to the owners that I'd like to buy there property from them when they are ready to sell. They responded saying they'd give me first right of refusal. We could use the store front as additional rental income if we acquire it. More importantly, acquiring this land is key to developing the property properly. It would give us an additional unit to build, along with access to the alley.
So, Assume I acquire the store front by saving up for a down payment from my cash flowing Airbnb. The 1927 property now goes from a minimal cash flowing 9000sf property to a 12000sf $1000/month property.
My questions are:
What are some steps we can be taking today that will help us prepare for the development of this land?
Is developing the land even the right answer?
We want to maximize the value of the property in the present and in the future, in order to continue on our path of reaching the goal of 10 units in 10 years. I can't fit all 10 units on this 1 property so I know I need to
Consider beyond that. I'd like to hear some philosophy and what are some of your general rules when dealing with land that has so much potential and the cash flow to help save.